It is harder to justify the risk appetite when there was no significant improvement in the global growth outlook. Furthermore, much of the demand for stocks was due to a sharp increase in oil prices, which lifted sentiments on other commodities as well.

Without a solid uptick in demand, it’s difficult to see how the rally can sustain. This week should see traders cautiously treading the barrage of data, and juggling central bank meetings. For more, read my week ahead outlook.

Can the STI break through 3000?

The Straits Times Index (STI) had an amazing performance in March, after embarking on a rally in the previous month, gaining +6.5%. Many in the market are expecting a pullback to take place before continuing its uptrend. The STI managed to close above 2900 for the first time this year on 14 April 2016. While there could still be momentum sufficient to push it higher, it seems that the psychological key 3000 is a formidable barrier.

Currently, the index is trading near the 50% Fibonacci retracement line from the August 2015 tumble. Should the index manage to break through the 3000 level, the next level to watch carefully is 3083 (26 October), which is the highest close since the early August selloff.

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